Vestavia Hills hopes to bring a 120-bed nursing home and a 50-bed rehabilitation facility to Patchwork Farms.

The city is in negotiations to sell seven acres to Tuscaloosa-based Northport Holding LLC and seven acres to Capital Growth MedVest of Birmingham, city officials said.

Vestavia is asking $200,000 per acre.

The City Council had put the sale of the property as a first read­ing item on its March 12 agenda.

Mayor Alberto "Butch" Zara­goza said the council will likely hold a public hearing and vote on the issue at its March 26 meeting.

Last September, the Jefferson County Commission voted to sell 238 licensed beds at the Jefferson Rehabilitation and Health Center near Tarrant to Northport Holding LLC.

The Tuscaloosa-based company had plans to relocate nursing home residents and close the fa­cility but use the 238 licensed beds at its other facilities. Alabama law allows companies to move li­censed nursing home beds within a county, subject to state approval. Northport Holding LLC also plans to build a 120-bed skilled nursing and rehabilitation facility on property near U.S. 31 and the Interstate 65 interchange in Hoover.

Brandon Farmer, a spokesman for Northport Holding, said the company plans a skilled nursing facility in Vestavia Hills similar to the one it is building in Hoover.

Northport currently operates six skilled nursing facilities in Jefferson County.

A Birmingham-based medical real estate company, Capital Growth Med-Vest, is developing two medical office buildings and an ambulatory surgery center in Madison near Huntsville and in Pensacola, Fla.

David Fowler, co-managing partner with Capital Growth, confirmed his company is interested in purchasing the Vestavia Hills property. But he said he wanted to wait until a deal is reached with the city before he commented further on Capital Growth's plans.

"We're still working through the land acquisition process," he said. "We don't want to assume anything at this point."

The potential sale of more Patchwork Farms property could signal better days ahead for Vestavia Hills.

Because of a slumping economy, the city had trouble attracting buyers for Patchwork Farms property, an 80-plus acre area near Cahaba River and Caldwell Mill roads slated for business development.

After stalled negotiations, the city reached an agreement last October to sell 16 acres of Patchwork Farms property to Life Time Fitness so it can build a 110,000-plus square-foot center, which could include a cafe, retail area and 600 parking spaces.

"I would say we're beginning to see some things move because the economy is perking up a little bit," Zaragoza said. "It's not where it needs to be but I think people are looking and trying to see what's out there. So I think we are starting to see some increase in economic development from the area."